U.S. Travel Cites Hit on Travel Caused by Government Shutdown

The U.S. Travel Association on Oct. 4 released excerpts of stories from America's travel community that it said provides a frontline picture of the damage already being done to America's travel economy by the federal government shutdown. U.S. Travel President and CEO Roger Dow said policymakers must understand that it's not just federal employees that are affected by the shutdown. “Entire local economies are built around our national parks and historic attractions," he said. "We're hearing from family-owned businesses who have had no choice but to send their employees home, with no idea when or if they will be able to call them back. And unlike federal workers, these workers have no expectation of getting their back pay when the government reopens."

Even though essential travel functions like customs processing, Transportation Security Administration inspections and air traffic control are still functioning, the travel community is hurt by the mere perception that travel to and within the U.S. is uncertain. Dow said the shutdown risks destroying several years of gains in economic output and improvements in travel facilitation by the federal government.

“Already you have countries like Germany telling their citizens to beware of problems and delays when traveling to the U.S.," Dow said. "With so much positive progress in place, our country doesn't need to take steps back in pursuit of welcoming millions of new international travelers. We urge leaders in Congress to realize that the longer this goes on, the worse the long-term implications will be for major portions of our economy."

U.S. Travel noted that the Statue of Liberty, as seen from the Staten Island ferry, is one of New York's premiere tourist attractions and a victim of the U.S. government shutdown of nonessential operations because of a budgeting dispute in Congress. A ferry company servicing the Statue of Liberty and Alcatraz expects to lose $2 million in total revenue (ferry fees in addition to retail spending such as food and souvenirs) and has to lay off 200 employees.

U.S. Travel also cited a Canada's Globe and Mail report warning that although international transit and transport continue amid the shutdown, any delays at border crossings and ports would deal a blow to Canada's economy. “I don’t think they [U.S. lawmakers] know themselves” what consequences await America's trade partners from the political standoff throwing a wrench in the works of international commerce, Jayson Myers, president of Canadian Manufacturers and Exporters, told the newspaper.

In Mexico, a news website last week warned of the consequences of a U.S. government shutdown in a commentary that demanded "Get serious Washington." It blamed the battle in Congress on America's massive debts and explained the looming shutdown as "a squabble over the inconsequential accomplishment of a 10-week funding extension."

U.S. Travel also cited reports from its own members who were asked to describe how the federal government shutdown is affecting their businesses, customers and communities. “I was talking with one of the largest European tour operators. They were very busy calling all of their clients to stop them from boarding the plane from the U.K. to America,” said a hotel marketing manager in Florida. “I can only imagine the tourism dollars American businesses will lose from just this one operator who has an international client database of seven million, and 2.7 million active membership of annual tour purchases. This is much bigger than the Americans who are out of a job that work at these parks. This involves anyone who services these international visitors nationwide."

Gettysburg Battlefield Tours, according to U.S. Travel, will see 2,500 fewer visitors and see a drop in revenues of some $20,000 due to park road closures. Five to seven employees will be laid off or are at risk of lay-offs.

Our town of 3,200 residents relies on tourism, our largest industry,” said a chamber of commerce official in Arizona. “Taxes collected through tourism provide revenue to the city with over $4.5 million to a budget of about $13 million. That is 35 percent of our city’s budget. If tourists don’t visit, then our small businesses may be forced to shut their doors. Those closed doors mean our residents will have to seek work elsewhere, taking with them students from our schools, rental money from landlords, taxes out of the city, county and possibly our state."

Meanwhile, the California branch of Hostelling International-USA, the non-profit that facilitates low-cost travel opportunities for tens of thousands of youth travelers annually, is being forced to shut down three of its properties that are located on national park grounds.

On the tour front, there are visible signs of the effect of the government shutdown as well. “Our guide and outfitter business has been doing nothing but finding ways to re-route tours and cancelling reservations all day because of the government shutdown,” said a tour company operator in Moab, Utah. “We are the oldest continuous concessionaire in these parks and have been exploring these lands and bringing foreign and domestic visitors here since before the national parks were here. I cannot honor the contracts I entered with my guests because the government has now rendered them null and void.”

Elsewhere, Mount Rushmore National Memorial in South Dakota estimates that one week of closure (Oct. 1-8) will impact 49,000 visitors, costing $247,095 in lost sales and putting 38 employees on furlough. The shops and restaurants at Acadia National Park in Maine expect to lose $40,000 each day of the shutdown. The entirety of the 60-person staff will be laid off. Mount Rainier National Park in Washington expects to lose $200,000 in revenue per day and be forced to lay off 50 employees well before the normal end of the high season.

In Yosemite National Park, which was already hit by the effects of the Rim Fire, the government shutdown may be even more severe. “We are just beginning our meager recovery from the Rim Fire which began on Aug. 17 – the absolute peak of our high season – and are now getting hit with the closure of Yosemite National Park,” said a hotel operator in Yosemite National Park. “Ironically, today is the 123d Birthday of Yosemite and it’s closed for the party. With significant loss of hours across the board, many of our staff are now attempting to draw unemployment checks. However, due to a change over in the processing of checks, my people have not received these checks in over six weeks. They are running out of food for their families and are being provided food by the local food bank. They have also received notices of their electric, water and propane being turned off."

Four weddings booked for Yosemite two years ago this past weekend have now been cancelled. “How would you like to make the calls to the bride or her dad? How about the family members flying in for the wedding?" said the president of an association of national parks-dependent businesses

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